Politics aside, is Gujarat a great growth story?

Through the Sardar Patel Participatory Water Conservation Scheme, check dams are built with monetary contribution from beneficiaries, 20% in some cases and 10% in others. Animal health camps have been organized in several villages...Of more recent vintage has been the Integrated Wadi and Agriculture Diversification Project (IWADP), started in 2009...IWADP requires a participating entry free from BPL ST families who wish to participate. IWADP has two distinct strands.

There is Project Sunshine strand for the dryland regions of north and central Gujarat, where one tries to push crops like hybrid maize, potato, mustard, pigeon pea and Bt cotton in districts like Sabarkantha, Banaskantha, Panchmahal, Dahod and Vadodara...[the] Jeevika projects for water-intensive areas in south Gujarat, where one tries to push vegetables like tomato, bitter gourd, bottle gourd, okra, pointed gourd, parwal and turmeric and fruits like mango, banana, cashew in districts like Narmada, Valsad, Tapi, Navsari, Surat and Dangs.

PHYSICAL INFRASTRUCTURE

In 2001, Gujarat was a power deficit state, by roughly around 2,000 MW. By the end of 2012, Gujarat will have a power surplus, though expected increases in GSDP growth also increase the demand for power. However, the Gujarat success story isn't just about the macro generation situation. It is also about reduction in T&D losses, down from 35.90% in 2002-03 to 22.20% in 2006-07. It is 20.13% in 2010-11. This is partly because T&D losses aren't actually transmission and distribution losses. They are also about theft and unmetered supply.

Other than metering, theft of electricity became a criminal offence and the law was enforced, with distributors insulated from political pressures. There were special checking squads...Provisions were made for sealed meters that were tamper-proof. Through an e-Urja project, electronic billing and payment was introduced. Faulty meters were replaced. Unauthorized connections were regularized through one-time settlements. The Jyotigram Yojana (JGY) ensures 3-phase power supply to all villages.

The key was a bifurcation of supply lines into dedicated agricultural feeders. For agricultural use, one would thus be ensured continuous power for 8 hours a day, at pre-determined times. For other rural loads, there would be 24x7 power. A 24x7, 3-phase supply was provided to JGY feeders. These then provided 8 hours of 3-phase continuous supply to agricultural feeders and 1-phase 24x7 power to other rural uses.

The argument about people wanting subsidised power and refusing to pay higher tariffs is misplaced. People are prepared to pay, provided that the quality of power supply improves. It was no different for JGY. Once power at pre-determined hours was available, there was less of an incentive to divert subsidized power for agriculture to domestic household use. JGY helped reduce T&D losses. It also helped reduce transformer failures. More importantly, it led to all villages being electrified, without load-shedding, and this had positive socio-economic multiplier benefits.

GUJARAT STORY

Is there a Gujarat story? Clearly, there is. That's reflected in high GSDP growth since 2002 and is also reflected in poverty declines, with no significant increase in inequality, data constraints notwithstanding. Is this reflected in human development outcomes improving, especially in backward geographical regions and backward segments of the population?

The evidence suggests that there have been improvements, especially after the conscious focus on such regions and segments since the 11th Plan (2007-12). Therefore, if Gujarat is being criticized on inequitable development, the time-line of data points is important. Pre-2007 data are not pertinent and one must also remember that social sector outcomes often improve with a time-lag. At best, one can complain that these improvements are not yet reflected in northern and central Gujarat.

If one accepts this Gujarat story, one can move on to the next question. What is the Gujarat model and what has happened? It is one of freeing up space for private initiative and enterprise and the creation of an enabling environment by the State. It is one of decentralisation of planning and empowering people. It is about targeted public expenditure through specific schemes, supplementing CSS-s with State-specific schemes.

It is one of bureaucratic empowerment and improving the efficiency of public expenditure. It is one of feedback loops from the government machinery to people and from people to the government machinery. It is one of delivering public goods (water, roads, electricity, schools, education).